Indonesia secures $1.25b green financing for power sector at COP29

It will support the development of Pumped Storage Hydropower Plants.

Indonesia has secured $1.25b (EUR1.2b) in green financing from Kreditanstalt für Wiederaufbau (KfW) for the development of clean energy infrastructure.

The agreement was finalised at the 29th Conference of the Parties (COP29) in Baku, Azerbaijan, with a memorandum of understanding (MoU) signed between PT PLN (Persero) and KfW.

The funding will support the development of Pumped Storage Hydropower Plants and an expanded transmission network to connect green power plants. The initiative is part of Indonesia's broader efforts to transition to renewable energy and reduce carbon emissions.

Hashim Djojohadikusumo, special envoy of the president of Indonesia, said the country is committed to achieving sustainable economic growth and energy self-sufficiency through this green transition.

He outlined a target of 8% economic growth over the next five years and emphasised the importance of increasing renewable energy generation capacity by 75% over the next 15 years, including an addition of 100 gigawatts (GW) of electricity.

"As a major nation, we are committed to fulfilling our responsibility to protect the future of our environment. We deeply appreciate the established international cooperation, which is a testament of our collective efforts in achieving the Net Zero Emissions (NZE) target," Djojohadikusumo said.